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2010 (2) TMI 908 - AT - Income TaxReassessment - questioning status of the Hindu undivided family to the assessee for all 10 years - Held that:- The facts of the present case before us clearly states that the status of the Hindu undivided family has been accepted by the Assessing Officer after due inquiry and going through the documentary evidence produced before him and the Revenue has not challenged the findings of the Assessing Officer for the assessment years 1987-88 to 1994-95. To that effect, that the status of the assessee is the Hindu undivided family in those assessment years, Subsequent set aside by the Tribunal and that also not on this issue, status cannot be disturbed. Accordingly, in conformity with the findings of the CIT(Appeals) accepting the status of the assessee as Hindu undivided family and hold that whatever addition will be sustained, that will be in the hands of the Hindu undivided family and not in individual. Disallowance of agriculture expenses - Held that:- the Revenue has accepted the agricultural income in the earlier years at Rs. 6.24 lakhs in the assessment year 1993-94 and Rs. 5.30 lakhs in the assessment year 1992-93. Accordingly, we can only make a fair estimate and taking the figures of earlier years, we estimate the disallowance at Rs. 1 lakh only and the balance can be treated as agricultural income. The Assessing Officer is directed to recompute the disallowance at Rs. 1 lakh only. This issue of the Revenue's appeal is dismissed and that of the assessee is partly allowed. Uexplained investment - Held that:- As before us the assessee has explained the sources as the availability of funds and investment made out of the same. CIT(A) has recorded the facts, that from the agricultural activity and diary farming, the assessee having income which is not disputed. Once the funds to the tune of Rs. 60 lakhs for investment are available with the assessee, the source itself is explained and accordingly, we delete this addition and to that extent the order of the Commissioner of Income-tax (Appeals) is revised - unexplained investment in household items and unexplained investment in immovable property, has been explained taking the capital available with the assessee and funds available in terms of income and assets, by the AO for all ten years. Deemed interest charged at 18 per cent on the amount of loans and advances given by the assessee to various persons - Held that:- As there is no agreement between the assessee and the persons to whom the money has been advanced regarding charging of interest and the assessee has actually not charged any interest and these loans were interest free loans. As there is no charge of interest, the assessee is not entitled for any income. Accordingly, the deeming addition made by the Assessing Officer is deleted.
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